Knowledge Synergies The New Paradigm of Innovation Israel Makov New England-Israel Life Sciences Summit - October 26, 2009
Pharma Industry Challenges and Pressures At an All-Time High Historically Low R&D Productivity Generic Competition Pharma Industry Pricing Pressure Sales and Marketing Challenges
How Is Big Pharma Attempting to Break the Siege? Increasing M&A and product acquisitions Diversifying Focusing on biopharma Reducing costs across the value chain Extending product life cycles and even entering generics!
The Competitive Arena of Healthcare We want the best and the latest Patients Healthcare Payors & Regulators We want cost control and safety We want to be effective Providers We want to grow and prosper Companies
Projected U.S. Healthcare Expenditures Source: Goldman Sachs
Fastest Growing Demographic Group: People 65 and Over Source: U.S. Census Bureau
The Elderly Are Becoming Even More Elderly Percentage of population over 85 Source: U.S. Census Bureau
And There Are Fewer People to Carry the Burden! Ratio of working-age people (20-64yrs) to elderly (65+) Source: OECD
Waste U.S. Healthcare Expenditures and Estimated Waste $ 13 trillion $ 2.3 trillion $ 4 trillion waste $ 700 billion waste Source: Centers for Medicare and Medicaid Services; Goldman Sachs
How Effective Are Standard Drug Treatments? Therapeutic area Rate of efficacy with standard drug treatment Cancer (all types) Alzheimer s disease Incontinence Hepatitis C Osteoporosis Rheumatoid arthritis Migraine (prophylaxis) Migraine (acute) Diabetes Asthma Cardiac arrhythmias Schizophrenia Depression* *Applies to the drug class known as selective serotonin reuptake inhibitors. Source: Harvard Business Review
Rising Cost of Treating Cancer Source: National Cancer Institute
How Productive is Pharma s R&D? Source: PhRMA; FDA
Knowledge Synergies The New Paradigm of Innovation Monitoring Diagnostics Immunization Developing a Comprehensive Knowledge Base Screening Therapy Rehabilitation
Knowledge Synergies The New Paradigm of Innovation Developing Therapeutic Drugs and Medical Devices Developing Synergy-Based Knowledge Developing Screening Diagnostics & Monitoring Tools Define disease models Build disease knowledge Define bio-informatic models Target molecule detection & development Build target knowledge Develop molecular diagnostics Identify target patient population Build product knowledge Develop bio-markers Comprehensive Medical Approach
The Pharma Company of the Future How can it be done? Example: Ischemic Stroke Stroke is a leading cause of death and disability in the U.S. Of the roughly 780,000 strokes in the U.S. each year, 70%-80% are ischemic in nature. The medical challenge is to limit the severity of ischemic injury. Source: American Heart Association
The Pharma Company of the Future Step 1: Merging 4 Companies in Late-Stage Development Aposense Molecular diagnostic Identifies apoptotic cells and determines neuroprotective therapy Status: Phase IIb D-Pharm A neuroprotective therapeutic molecule Saves pneumbra (area around stroke); improves chance for recovery Status: completed Phase IIb, completed pre-ind meeting with FDA BrainsGate Therapeutic device stimulates SPG Controlling cerebral blood flow, thus higher oxygenation Status: pivotal trials Motorika Robotic technology stroke rehabilitation Delivers intense, repetitive, functionally-based therapy that leads to greater stroke recovery Status: commercial phase
The Pharma Company of the Future Step 2: Merging 3 Additional Companies in Earlier Stages of Development Aposense D-Pharm BrainsGate Motorika Pluristem Therapeutics Inc. Bio-therapeutics Dedicated to the commercialization of non-personalized (allogeneic) cell therapy products for the treatment of ischemic stroke Status: pre-clinical Ornim Medical Devices Developing innovative solutions for non-invasive monitoring of vital signs of the brain (oxygen saturation) Status: FDA approved Keter Medical Medical device Developing a CT/MRI road mapping non-invasive Doppler TCD system for diagnostics and treatment of cerebral ischemic stroke Status: seed
Knowledge Synergies The New Paradigm of Innovation Diagnostics Aposense Ornim Keter Monitoring Aposense Ornim Keter Immunization (to be found) Screening (to be found) Rehabilitation Motorika Therapy Medical devices BrainsGate Pharmaceuticals Pluristem D-Pharm
How Can We Build the Pharma Company of the Future? Funding Big Pharma s Aggregate Cash & Investment Source: Goldman Sachs
The New Business Model of Big Pharma Glioma Huntington s disease Big Pharma Alzheimer s disease Neuroblastoma Incontinence Stroke
How Can We Build the Pharma Company of the Future? Leadership
Fulfilling Big Pharma s Mission: Addressing Unmet Medical Needs Therapeutic area Rate of efficacy with standard drug treatment Cancer (all types) Alzheimer s disease Incontinence Hepatitis C Osteoporosis Rheumatoid arthritis Migraine (prophylaxis) Migraine (acute) Diabetes Asthma Cardiac arrhythmias Schizophrenia Depression* *Applies to the drug class known as selective serotonin reuptake inhibitors. Source: Harvard Business Review
Knowledge Synergies The New Paradigm of Innovation We owe it to all the people who deserve to do more, feel better and live longer. Thank you!